With a residential leasehold premises in Blackley, you are actually buying a right to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially when there are less than eighty years left. Residents in Blackley with a lease approaching 81 years unexpired should seriously consider extending it sooner than later. When the lease term has below eighty years left, under the relevant legislation the freeholder is entitled to calculate and demand a larger amount, based on a technical calculation, known as “marriage value” which is due.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Blackley,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Blackley valuers.
Samuel owned a studio apartment in Blackley on the market with a lease of a little over 61 years left. Samuel on an informal basis contacted his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 per annum. No ground rent would be due on a lease extension were Samuel to invoke his statutory right. Samuel obtained expert legal guidance and secured satisfactory resolution informally and sell the property.
Last Christmas we were phoned by Mrs P King , who owned a garden flat in Blackley in July 2001. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative premises in Blackley with a long lease were valued about £183,600. The mid-range ground rent payable was £65 collected quarterly. The lease lapsed in 2082. Given that there were 57 years left we calculated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 not including expenses.
Mr Teddy Patel took over the lease of a ground floor flat in Blackley in August 2009. The question was if we could approximate the price would likely be for a ninety year extension to my lease. Similar homes in Blackley with 100 year plus lease were worth £250,000. The average amount of ground rent was £50 collected every twelve months. The lease expired in 2093. Given that there were 68 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £10,500 and £12,000 not including fees.